Method and system for financing acquisition of vehicles

ABSTRACT

In one embodiment of the present invention, a method for financing acquisition of a vehicle is disclosed. The method comprises receiving a future interest in a vehicle in consideration for a future interest price upon transfer of a legal title in the vehicle in consideration for a legal title price.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a divisional of U.S. application Ser. No.12/717,221, filed Mar. 4, 2010, which is a divisional of U.S.application Ser. No. 10/604,536, filed Jul. 29, 2003, now U.S. Pat. No.7,689,484, which are incorporated in their entirety by reference herein.

TECHNICAL FIELD

One aspect of the present invention relates to a method for transferringlegal title in a vehicle.

BACKGROUND

In general, vehicle consumers either choose ownership or leasing upondeciding to acquire a vehicle. Ownership means that legal title in thevehicle is transferred to the vehicle consumer. Ownership may appeal toconsumers that value owning a vehicle and/or intend on using the vehiclefor a relatively long period of time, for example, five to seven years.Other vehicle consumers are drawn to leasing because of relatively lowmonthly payments and the opportunity to return the leased vehicle aftera relatively short period of time, usually two to three years, and enterinto another leasing arrangement for a new vehicle. This opportunityappeals to vehicle consumers that enjoy driving a new vehicle every twoto three years, for example. In either situation, ownership or lease,consumers often finance acquisition of the vehicle.

Commonly, vehicle acquisition is financed by a vehicle finance company.Under one typical vehicle acquisition plan, the vehicle consumerpurchases a vehicle from a vehicle dealer and enters into a retailinstallment contract (otherwise referred to as a RIC) with the vehicledealer. The RIC is a contract which evidences the purchase of thevehicle on credit over time. The vehicle dealer then assigns the RIC tothe vehicle finance company in exchange for the outstanding balance dueon the RIC. The vehicle finance company collects a periodic payment,usually monthly, from the vehicle consumer.

Under a typical leasing arrangement, the vehicle manufacturer sells avehicle to the vehicle dealer. The vehicle dealer usually transferspossession of a leased vehicle to the consumer after execution of alease agreement and payment of a down payment, a first month leasepayment and applicable taxes. The vehicle dealer then sells the vehicleand assigns the lease to the vehicle finance company. In return, thevehicle finance company typically delivers the purchase price to thevehicle dealer.

Although each financing arrangement has certain advantages as describedabove, typical ownership and leasing plans present disadvantages forvehicle consumers and vehicle financing companies. RICs afford vehicleownership to vehicle consumers at the cost of higher monthly paymentsrelative to leasing. Leasing usually offers relatively low monthlypayments relative to ownership, but does not afford ownership. Inaddition, vehicle finance companies are required to file cumbersomereports with state and local jurisdictions on vehicles leased since theyown the vehicles as physical assets. Moreover, many vehicle financingcompanies maintain separate business operations for ownership andleasing programs. Since many of the functions carried out by the twobusiness operation are duplicative, finance companies experiencebusiness inefficiencies.

In light of the foregoing, there exists a need to provide a method andsystem for financing vehicle acquisition as with the sale via an RICwith relatively low payments as with a lease. There also exists a needto provide a method and system which shifts legal title to the vehicleconsumer, thereby lessening the burden on vehicle finance companies tofile cumbersome reports typical of leasing arrangements. Moreover, amethod and system is needed that can allow vehicle finance companies toat least partially fold together their leasing business operation intotheir ownership business operation by transferring legal title as acomparable alternative to a typical leasing arrangement. There alsoexists a need for providing a method and system for financingacquisition of tangible personal property with at least some of theattributes mentioned above.

SUMMARY

One aspect of the present invention is a method for financingacquisition of a vehicle. The method includes receiving a futureinterest in a vehicle in consideration for a future interest price upontransfer of a legal title in the vehicle in consideration for a legaltitle price. The method can further include financing the legal titleprice. In certain embodiments, the legal title price is financed by avehicle finance company and the vehicle finance company receives thefuture interest. The future interest can be a reversionary interest or aremainder.

In certain embodiments, the receiving step is accomplished at leastpartially by utilizing an at least one computer and an at least onecomputer network.

A vehicle dealer can transfer the vehicle to a vehicle consumer.According to this transaction, the legal title in the vehicle isreceived by the vehicle consumer. The legal title can be provided for alegal title term. The legal title term can be about equal to the vestingperiod. The legal title term and the vesting period can be in the rangeof about one year to about six years. In certain embodiments, the futureinterest can vest upon expiration of the vesting period. The method canfurther include receiving the financed legal title price through anumber of periodic payments.

According to another aspect of the present invention, a method fortransferring legal title in a vehicle is disclosed. The method includesproviding a vehicle and transferring a legal title in the vehicle inconsideration for a legal title price while retaining a future interestin the vehicle. Notably, the future interest has a vesting period. Themethod can further include transferring the future interest inconsideration for a future interest price.

In certain embodiments, the legal title price can be financed. The legaltitle price can be financed by a vehicle finance company. The futureinterest can be a reversionary interest or a remainder.

The transferring step can be accomplished at least partially byutilizing an at least one computer and an at least one computer network.

A vehicle dealer can provide the vehicle. The method can further includereceiving the legal title in the vehicle. The legal title in the vehiclecan be received by a vehicle consumer. The future interest can bereceived by a vehicle finance company. The legal title can be providedfor a legal title term. The legal title term can be about equal to thevesting period. The legal title term and the vesting period can be inthe range of about one year to about six years. The future interest canvest upon expiration of the vesting period. The method can furtherinclude receiving the financed legal title price through a number ofperiodic payments.

According to yet another aspect of the present invention, acomputer-implemented system for transferring legal title in a vehicle isdisclosed. The system includes an at least one server computer. The atleast one server computer can be configured to receive identificationand legal title information for a vehicle. The identificationinformation can include a vehicle make, a vehicle model and a vehicleyear information and the legal title information can include a legaltitle price and a legal title term. The at least one server computer canbe further configured to transmit the identification and legal titleinformation to at least partially effectuate transfer of a legal titlein the vehicle. The vehicle can be transferred to a vehicle consumer.

In certain embodiments, the system can further include an at least onedealer finance company computer. The at least one dealer finance companycomputer can be configured to receive the vehicle information and thelegal title information to at least partially effectuate transfer of thelegal title in the vehicle. The legal title information can furtherinclude a future interest price and a vesting period.

According to another aspect of the present invention, acomputer-implemented system for transferring legal title in a vehicle isdisclosed. The system can include an at least one computer. The at leastone computer can be configured to cause display of a website. Thewebsite can include identification and legal title information for avehicle and the identification information can include a vehicle make, avehicle model and a vehicle year information. The legal titleinformation can include a legal title price and a legal title term. If abuyer decides to acquire the vehicle, the system can be configured tocause display of a form on the website. The form can be at leastpartially completed with buyer information through the website. Thesystem can be further configured to transmit the at least partiallycompleted form to at least partially effectuate transfer of legal titleto the buyer.

According to another aspect of the present invention, a method fortransferring legal title in personal property is disclosed. The methodincludes receiving a future interest in a personal property inconsideration for a future interest price upon transfer of a legal titlein the personal property in consideration for a legal title price. Thepersonal property can be selected from the group consisting of: atangible personal property and an intangible personal property. Thepersonal property can be a good. The personal property can be a vehicle.In certain embodiments, the transfer of the legal title price can befinanced.

According to yet another aspect of the present invention, a vehiclefinancing apparatus is disclosed. The apparatus includes a means forreceiving a future interest in a vehicle in consideration for a futureinterest price upon transfer of a legal title in the vehicle inconsideration for a legal title price and a means for financing thelegal title price.

According to another aspect of the present invention, a method forfinancing acquisition in a vehicle is disclosed. The method includesreceiving a future interest in a vehicle in consideration for a futureinterest price upon transfer of a legal title in the vehicle inconsideration for a legal title price. A vehicle finance company canreceive the future interest having a vesting period. The future interestcan be a reversionary interest or a remainder. The legal title can beprovided for a legal title term. The legal title term can be about equalto the vesting period. The method further includes financing the legaltitle price. The vehicle finance company can finance the legal titleprice. The method can further include receiving the financed legal titleprice through a number of periodic payments.

The above embodiments and other embodiments, features, and advantages ofthe present invention are readily apparent from the following detaileddescription of the best mode for carrying out the invention whenconsidered in conjunction with the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

The features of the present invention which are believed to be novel areset forth with particularity in the appended claims. The presentinvention, both as to its organization and manner of operation, togetherwith further objects and advantages thereof, may be best understood withreference to the following description, considered in conjunction withthe accompanying drawings:

FIG. 1 represents a transactional flow chart of a method fortransferring legal title in a vehicle in accord with a first embodimentof the present invention;

FIG. 2 represents a transactional flow chart of a method fortransferring legal title in a vehicle in accord with a second embodimentof the present invention;

FIG. 3 represents a transactional flow chart of a method fortransferring legal title in a vehicle in accord with a third embodimentof the present invention;

FIG. 4 represents a transactional flow chart of a method fortransferring legal title in a vehicle in accord with a fourth embodimentof the present invention;

FIG. 5 represents a computer-implemented system for effectuating atransactional flow in accord with an embodiment of the presentinvention;

FIG. 6 depicts an example of a contract in accordance with an embodimentof the present invention; and

FIG. 7 is an example of a reversionary interest certificate inaccordance with an embodiment of the present invention.

DETAILED DESCRIPTION

Detailed embodiments of the present invention are disclosed herein.However, it is to be understood that the disclosed embodiments aremerely exemplary of the invention that may be embodied in various andalternative forms. The figures are not necessarily to scale, and somefeatures may be exaggerated or minimized to show details of particularcomponents. Therefore, specific functional details disclosed herein arenot to be interpreted as limiting, but merely as a representative basisfor the claims and/or as a representative basis for teaching one skilledin the art to variously employ the present invention.

It should be understood that the present invention relates to methodsand systems for financing acquisition of vehicles and other personalproperty through transfer of legal title. This invention does not relateto a leasing arrangement. As used herein, legal title refers to completeand perfect title so far as the apparent right of ownership andpossession. It should be understood that a right of possession need notbe accompanied by legal title.

One aspect of the present invention is a method for transferring legaltitle in personal property. The personal property can be intangible ortangible personal property. It should be understood that tangiblepersonal property can include, but is not limited to, vehicles,equipment, and machinery. It should also be understood that personalproperty can be mobile or immobile. In certain embodiments, the personalproperty can be mobile, for example, vehicles. The method can includereceiving a future interest in a vehicle in consideration for a futureinterest price upon transfer of a legal title in the vehicle inconsideration for a legal title price.

FIG. 1 represents a transactional flow chart of a method fortransferring legal title in a vehicle in accord with one embodiment ofthe present invention. Block 10 represents an entity or entities whichmanufacturers vehicles, otherwise referred to as a vehicle manufacturer.The vehicle manufacturer can be of any corporate form or organization aslong as it produces vehicles which are intended for vehicle consumerpurposes, such as transportation. Block 12 represents an entity orentities dealing in sales or leasing of vehicles, otherwise referred toas a vehicle dealer. The vehicle dealer may or may not have a corporateaffiliation with the vehicle manufacturer as long as it deals invehicles with vehicle consumers. Block 14 represents an entity orentities which finance the sale or lease of vehicles for vehicleconsumers, otherwise referred to as a vehicle finance company.Non-limiting examples of vehicle finance companies include creditcompanies affiliated with the vehicle manufacturer, banks, and otherfinancing companies which focus on vehicle financing. Block 16represents a vehicle consumer, which can be, for example, an individual,individuals, or an organization. Vehicle consumers are otherwisereferred to as buyers or customers.

Arrows 18, 20, 22, 24, 26, and 28 represent a transaction flow fortransferring legal title to the vehicle consumer. Arrow 18 representstransfer of legal title in a vehicle from the vehicle manufacturer tothe vehicle dealer in consideration for a delivery price ($1). Thevehicle dealer gives the delivery price ($1) to the vehiclemanufacturer, as depicted by arrow 20.

After the vehicle dealer receives legal title in the vehicle, it dealswith a vehicle consumer who agrees to purchase a present interest in thevehicle for a legal title term in consideration for a legal title price($2). As an example, the legal title term can be from about one year toabout six years. Non-limiting examples of vehicle consumers that may beinterested in purchasing a present interest in a vehicle includeindividuals that value holding legal title in the vehicle while makinglow payments relative to ownership. An example of how these advantagesare provided by the present invention is detailed below.

Arrow 22 represents transfer of the legal title in the vehicle for thelegal title term from the vehicle dealer to the vehicle consumer. Inconsideration for the present interest, the vehicle consumer deliversthe legal title price ($2) to the vehicle dealer, as depicted by arrow24. It should be understood that legal title in the vehicle shifts fromthe vehicle dealer to the vehicle consumer by virtue of the transactiondepicted by arrows 22 and 24. The legal title is encumbered by a futureinterest maintained by the dealer and which may subsequently be sold tothe vehicle finance company. In certain embodiments, the vehicleconsumer pays the legal title price via financed monthly paymentslasting through the legal title term, although bi-weekly or bi-monthlypayments, or other periodic payments, may be utilized to best fit aparticular implementation of the present invention.

As represented by arrow 26, vehicle dealer 12 sells a future interest inthe vehicle to the vehicle finance company 14. The future interest canvest in a vesting period. The vesting period can be about equal to thelegal title term, which can be from about one year to about six years.In consideration, the vehicle finance company delivers a future interestprice ($3) to the vehicle dealer as depicted by arrow 28.

By virtue of the two transactions depicted by arrows 22 and 24, and 26and 28, respectively, legal title in the vehicle is transferred to thevehicle consumer, encumbered by a future interest maintained by thevehicle finance company. The future interest depicted on the legal titledocument may include “reversionary interest” or “remainder” language inthe security interest section to denote that the vehicle finance companyhas the future interest in the vehicle. Advantageously, the vehicleconsumer can elect to purchase unrestricted legal title in the vehicleat or near the end of the legal title term by paying the about futureinterest price via, for example, a balloon payment. It should beunderstood that the future interest price can vary depending on the timevalue of money and the present value of the vehicle.

A relationship can exist between the legal title price ($2) and thefuture interest price ($3). This relationship can be referred to as anpresent/future interest ratio. It should be understood that thepresent/future ratio can depend on many factors, including, but notlimited to, consumer trade-in of an existing vehicle, residual value ofthe vehicle, and dealer promotions. In certain embodiments, apresent/future interest ratio of about 100:1 to about 1:100 can existbetween the legal title price and future interest price. In otherembodiments, the present/future interest ratio can be in the range ofabout 3:1 to about 2:3.

FIG. 2 represents a transactional flow chart of a method fortransferring legal title in a vehicle in accord with a second embodimentof the present invention. According to FIG. 2, the transactional flowchart includes vehicle manufacturer 30, vehicle dealer 32, vehiclefinance company 34, and vehicle consumer 36. As represented by arrows 38and 40, vehicle manufacturer 30 sells legal title in a vehicle tovehicle dealer 32 in consideration for a delivery price ($1).

After the vehicle dealer receives legal title in the vehicle, itidentifies a vehicle consumer (vehicle consumer 36) that agrees topurchase a present interest in the vehicle for a legal title term inconsideration for a legal title price ($2). Once vehicle dealer 32identifies consumer 36, it sells the vehicle to vehicle finance company34 in consideration for the delivery price ($1), as depicted by arrows42 and 44. As represented by arrows 46 and 48, vehicle finance company34 sells the present interest for the legal title term in considerationfor the legal title price ($2) to vehicle dealer 32. It should beunderstood that vehicle finance company 34 retains a future interest,i.e. a remainder, in the vehicle. As represented by arrows 50 and 52,vehicle dealer 32 sells the vehicle to vehicle consumer 36 for thepresent interest in consideration for the legal title price ($2). Byvirtue of the transactional flow depicted in FIG. 2, the legal title ofthe vehicle is transferred to the vehicle consumer, and covered by afuture interest, i.e. the remainder, maintained by the vehicle financecompany.

FIG. 3 represents a transactional flow chart of a method fortransferring legal title in accord with a third embodiment of thepresent invention. According to FIG. 3, the transactional flow involvesvehicle manufacturer 54, vehicle dealer 56, vehicle finance company 58and vehicle consumer 60. Notably, vehicle finance company 58 can be avehicle dealer acting in a capacity as an agent for vehicle financecompany 58. As represented by arrows 62 and 64, vehicle manufacturer 54sells legal title in a vehicle to vehicle dealer 56 in consideration fora delivery price ($1). Once vehicle dealer 56 identifies a vehicleconsumer (vehicle consumer 60) that agrees to purchase a presentinterest in the vehicle having a legal title term in consideration for alegal title price ($2), vehicle dealer 56 transfers the vehicle tovehicle finance company 58 in consideration for the delivery price ($1).

As represented by arrows 70 and 72, vehicle finance company 58 transfersthe present interest, i.e. encumbered legal title, to vehicle consumer60 in consideration for the legal title price ($2). Vehicle financecompany 58 retains a future interest, i.e. remainder, in the vehiclethat vests once the legal title term expires. As a result of thetransactional flow depicted in FIG. 3, legal title in the vehicle istransferred to the vehicle consumer, encumbered by the future interest,i.e. remainder, maintained by the vehicle finance company.

FIG. 4 represents a transactional flow chart of a method fortransferring legal title in accord with an embodiment of the presentinvention. According to FIG. 4, vehicle manufacturer 74, vehicle dealer76, first vehicle finance company 78, second vehicle finance company 80,and vehicle consumer 82 participate in the transactional flow. Asdepicted by arrows 84 and 86, vehicle manufacturer 74 sells a legaltitle in a vehicle to vehicle dealer 76 in consideration for a deliveryprice ($1). In turn, vehicle dealer 76 identifies a vehicle consumer(vehicle consumer 82) that agrees to purchase a present interest, i.e.encumbered legal title, in the vehicle for a legal title term inconsideration of a legal title price ($2).

Once identified, vehicle dealer 76 sells the legal title in the vehiclefor the legal title term in consideration for the delivery price ($1) tofirst vehicle finance company 78. Notably, first vehicle finance company78 can be associated or affiliated with vehicle manufacturer 74. Asdepicted in blocks 92 and 94, first vehicle finance company 78 sells thepresent interest in consideration for the legal title price ($2) tosecond vehicle finance company 80. Notably, second vehicle financecompany 80 can be a finance company unaffiliated with vehiclemanufacturer 74, otherwise referred to as a third party finance company,i.e. unaffiliated with vehicle manufacturer 74.

As depicted by arrows 96 and 98, second vehicle finance company 80 sellsthe present interest to vehicle consumer 82 in consideration for thelegal title price ($2). First vehicle finance company 78 retains afuture interest, i.e. remainder, in the vehicle that vests afterexpiration of the legal title term, otherwise referred to as the vestingperiod. By virtue of the transactional flow depicted in FIG. 4, thelegal title to the vehicle shifts to vehicle consumer, encumbered by thefirst vehicle finance company's future interest.

FIG. 5 represents a computer-implemented system for effectuating atransactional flow in accord with an embodiment of the presentinvention. It should be understood that elements of thecomputer-implemented system of FIG. 5 can be modified, rearranged,deleted, or amplified to best fit a particular implementation of thepresent invention.

According to FIG. 5, vehicle manufacturer computer 100, vehicle dealercomputer 102, vehicle finance computer 104, and optionally, vehicleconsumer computer 106 can be interconnected via a computer network.Vehicle manufacturer computer 100 can retrieve data and storeinformation regarding vehicles in vehicle manufacturer database 108. Theinformation can include, but is not limited to, vehicle information, forexample, vehicle identification number, vehicle make, vehicle model, andvehicle year, and delivery price information. Vehicle dealer computer102 can retrieve data and store information regarding vehicletransactions in vehicle dealer database 110. The information caninclude, but is not limited to, vehicle information and legal titleinformation, such as legal title price, legal title term, futureinterest price and vesting period. Vehicle finance company computer 104can retrieve data and store information in vehicle finance database 110.The information can include, but is not limited to, legal titleinformation.

Vehicle consumer 114 can visit vehicle dealership 116 and meet with adealer representative with the intention of acquiring a vehicle. Vehicleconsumer 114 can agree to acquire a present interest, i.e. encumberedlegal title, in the vehicle for the legal title term in considerationfor an legal title price.

In certain embodiments, the vehicle dealer representative retrieves datafrom vehicle dealer database 110 regarding vehicle legal title in orderto communicate legal title information to a vehicle consumer. In certainembodiments, this information includes legal title price and legal titleterm for the present interest. The legal title price and term can bedetermined by vehicle dealer computer 112 based on a number ofvariables, including, but not limited to, consumer trade-in of anexisting vehicle, residual value of the vehicle being promoted, anddealer promotions. Advantageously, vehicle dealer computer 102 candetermine these values while vehicle consumer 114 is at vehicledealership 116. Computer 102 can recalculate the values based on thenegotiation process that takes place between vehicle consumer 114 andvehicle dealership 116 before vehicle consumer 114 decides to purchasethe present interest in the vehicle.

In certain embodiments, once vehicle consumer 114 decides to purchasethe present interest in the vehicle, vehicle dealer computer 102 cantransmit vehicle information and legal title information to vehiclefinance computer 104 to at least partially effectuate transfer of legaltitle for the vehicle consumer. Vehicle finance computer 104 receivesthe information and processes it and transmits confirmation to vehicledealer computer 102 for confirming the transfer of the vehicle to thevehicle consumer in consideration for the legal title price. Asdiscussed in greater detail below, a contract and reversionary interestcertificate can be used to input vehicle, consumer and transactioninformation. It should be understood that the contract can be, but isnot limited to, a paper contract or an electronic contract. In certainembodiments, this information can be fed into the system disclosedabove.

In certain other embodiments, vehicle dealership 116 can use a contractto at least partially memorialize the agreement between vehicle consumer114 and vehicle dealership 116. FIG. 6 depicts an example of a contractin accordance with an embodiment of the present invention.

Contract 118 can include input boxes 120 and 122 for inputting buyer(and co-buyer if applicable) name and address (including county and zipcode) and creditor (seller name and address). It should be understoodthat buyer refers to vehicle consumer, as used in other parts of thisdocument. It should be understood that creditor refers to vehiclefinance company, as used in other parts of this document.

In certain embodiments, the following statement can appear under inputboxes 120 and 122: “You, the buyer (and co-buyer, if any), may buy thevehicle described below for cash or on credit for the term listed below.The cash price is shown below as ‘Cash Price’. The credit price is shownbelow as ‘Total Sale Price’. By signing this contract, you choose to buythe vehicle for the term listed below on credit under the agreements onthe front and back of this contract”. It should be understood that cashprice refers to the negotiated legal title price for the presentinterest in the vehicle and the total sale price refers to thenegotiated legal title price for the vehicle plus acquisition costs, asused in other parts of this document.

Contract 118 can also include input boxes 124, 126 and 128 for inputtingterm (in months for example), vehicle return date and reversionaryamount, respectively. It should be understood that reversionary amountrefers to the future interest price, as used in other parts of thisdocument.

Contract 118 can also include input block 130 for inputting vehicleinformation such as new/used status, mileage, year and make, model,gross vehicle weight (GVW) (if truck) in pounds, vehicle identificationnumber (VIN), and use for which purchased (personal, commercial,agricultural, other, etc.). Additionally, input block 130 can includetrade-in information, including, but not limited to, year and make,gross allowance, and/or amount owing.

Contract 118 can include input block 132 for inputting an itemization ofamount financed. In general, input block 132 can include, but is notlimited to, the following items: cash price, down payment (third partyrebate assigned to creditor, cash down payment, deferred down payment,and/or trade-in), unpaid balance of cash price, amount paid on thebuyer's behalf, and/or amount financed.

It should be understood that contract 118 can also include an inputblock for insurance. Information pertaining to vehicle, liability,credit life, and/or credit disability insurance can be input into theinsurance input block. The vehicle dealer can provide at least some ofthe insurance described above.

Contract 118 can include input block 134 for inputting a truth-inlending disclosure. In general, input block 134 can include, but is notlimited to, the following information, annual percentage rate (APR),finance charge, amount financed, total amount of payments, total saleprice and payment schedule. APR refers to the cost of the buyer's creditas a yearly rate. Finance charge refers to the dollar amount the creditwill cost the buyer. Amount financed refers to the amount of creditprovided to the buyer or at the buyer's behalf. The total amount ofpayments refers to the amount that the buyer will have paid when thebuyer has made all scheduled payments. The total sale price refers tothe total cost of the buyer's purchase in credit, including any downpayment. The payment schedule can include, but is not limited to, numberof payments, amount of each payment, and when payments are due.

Additionally, contract 118 can include a term sale disclaimer. Forexample, the term sale disclaimer can read as follows: “Term Sale: Youare purchasing a full ownership interest in the vehicle for a limitedterm. The time period for which you are purchasing this vehicle is shownabove in the ‘Term’ section. Your ownership interest will terminate onthe Vehicle Return Date, unless otherwise provided in this agreement”.

Moreover, contract 118 can include an excess wear, use and mileagecharges disclaimer. For example, the disclaimer can read as follows:“EXCESS WEAR, USE AND MILEAGE CHARGES: You may be charged on the VehicleReturn Date for excessive wear based on our standards for normal use. Atthat time, you must pay to Creditor X cents per mile for each mile inexcess of Y miles shown on the odometer.”

Contract 118 includes signature line 136 for the buyer's (andpotentially the co-buyer's) signature. Contract 118 can also includebuyer notice block 138 for reminding the buyer to read the contractbefore signing and informing the buyer of any conditions under thecontract. The buyer (and potentially the co-buyer) can sign in buyernotice block 138. Signature block 140 can be included for the seller'ssignature signifying that the Seller assigns the vehicle to the vehiclefinance company.

In certain embodiments, a reversionary interest certificate can be usedin addition to the contract to evidence the vehicle transaction. FIG. 7is an example of a reversionary interest certificate in accordance withan embodiment of the present invention. Certificate 142 can includeinput boxes 144 and 146 for inputting buyer (and co-buyer, if any) nameand address (including county and zip code) and creditor (seller nameand address), respectfully. Certificate 142 can also include input boxes148, 150 and 152 for inputting term (in months for example), vehiclereturn date, and reversionary amount, respectively.

Certificate 142 can also include a statement setting forth the holder'srights. For example, the statement can read as follows: “Holder of thisCertificate is entitled to the reversionary interest set forth in theabove described retail installment contract. Such rights shall includedthe right to ownership reverting to such holder. Holder may assign orencumber this Certificate.”

Certificate 142 includes signature block 156, which can include thefollowing statement: “By signing below the above named Creditor herebyassigns this Certificate to the vehicle finance company pursuant to theterms and conditions in the applicable term sale plan documents.”Signature block 156 can also include a line for the creditor's signatureand title.

Many mechanisms are contemplated for inputting information onto thecontract and/or the reversionary interest certificate. For example, thedealership representative can write the information onto a paper copy ofthe contract or the reversionary interest certificate with the help ofvehicle consumer 114. Alternatively, the contract or the reversionaryinterest certificate can be stored in a digital format and can beaccessed from vehicle dealer computer 102 through a user interface or ahand-held device, such as a personal digital assistant. The digitalformat can be a text-insertable PDF form. The dealer representative caninput information into the text-insertable PDF form through the userinterface. Once information entry is complete, the PDF form can bestored in vehicle dealer database 110. Moreover, the completed form canbe output to a printer in order to provide a printed copy to vehicleconsumer 114. The printed copy or the paper copy of the contract can befaxed or otherwise transmitted electronically to the vehicle financecompany for processing the future interest and resale exemptioncertificate.

In an alternative embodiment, vehicle consumer 114 can contact vehicledealership 116 through vehicle consumer computer 106 for investigatingacquisition of a vehicle and entering information into the contract viaa user interface if the user selects to acquire the vehicle. Anon-limiting example of vehicle consumer computer 106 is a personalcomputer. In certain embodiments, the user interface can be a web-baseduser interface.

Having generally described the present invention, a furtherunderstanding can be obtained by reference to a certain specific examplewhich is provided herein for purposes of illustration only and is notintended to be limiting.

The present example is based upon the transactional flow represented inFIG. 1. According to the example, a vehicle manufacturer sells a vehicleto a vehicle dealer in consideration for $21,000.00. It is understoodthat this value varies depending on many factors, including, but notlimited to, the vehicle being sold, or a business arrangement betweenthe vehicle manufacturer and the vehicle dealer.

The vehicle dealer then identifies a vehicle consumer that is interestedin purchasing a present interest in a vehicle for a legal title price.It should be understood that the legal title price can vary depending onnumerous factors such as dealer promotions, whether the vehicle consumerhas a trade-in, and the negotiation process between the vehicle dealerand the vehicle consumer. In this example, the legal title price is$15,000.00. After identifying the vehicle consumer, the vehicle dealersells a future interest in the vehicle to a vehicle finance company inconsideration for a future interest price, which in this example, is$10,000.00. As a result of the two transactions outlined above, thevehicle consumer obtains legal title in the vehicle based on the presentinterest and is responsible for relatively low payments, typical of aleasing arrangement. It is understood that the vehicle consumer can makemonthly payments on the $15,000.00 amount over a period of timeapproximately equal to a legal title term, comparable to those madeunder a leasing agreement.

In certain embodiments, the future interest price can be discounted toinsure that the vehicle finance company obtains a reasonable return onits investment which is a discount to the price paid for the futureinterest. Using the numbers above, the future interest price can bediscounted by a discount of $1,000, for example, to arrive at $9000,meaning that the dealer would be paid $9,000 for the future interest.Accordingly, the legal title price, if paid for by the vehicle financecompany, would reflect the discount on the future interest. For example,the vehicle finance company would pay the dealer $16,000.00 for theconsumer's contract on the present interest that had a $16,000.00 amountfinanced and $9,000.00 for the future interest.

While the best mode for carrying out the invention has been described indetail, those familiar with the art to which this invention relates willrecognize various alternative designs and embodiments for practicing theinvention as defined by the following claims.

While exemplary embodiments are described above, it is not intended thatthese embodiments describe all possible forms of the invention. Rather,the words used in the specification are words of description rather thanlimitation, and it is understood that various changes may be madewithout departing from the spirit and scope of the invention.Additionally, the features of various implementing embodiments may becombined to form further embodiments of the invention.

What is claimed is:
 1. A computer-implemented system for transferringlegal title in a vehicle, the system comprising an at least onecomputer, the at least one computer configured to: cause display of awebsite, the website including identification information and legaltitle information for a vehicle, the identification informationincluding a vehicle make, a vehicle model and a vehicle yearinformation, the legal title information including a legal title priceand a legal title term; upon receiving input indicative of a decision bya buyer to acquire the vehicle, causing display of a form on thewebsite, the form being at least partially completed with buyerinformation through the website; transmit the at least partiallycompleted form to at least partially effectuate transfer of legal titleto the buyer; effectuate transfer of the legal title in the vehicle inconsideration for a legal title price while retaining a future interestin the vehicle for a vehicle dealership, the future interest having avesting period; and effectuate transfer of the future interest to avehicle financing company in consideration for a future interest price.2. The computer-implemented system of claim 1 further comprising avehicle financing computer configured to receive input indicative of thefuture interest in a vehicle transferred to the vehicle financingcompany in consideration for the future interest price paid by thevehicle financing company upon transfer of the legal title in thevehicle to a vehicle consumer in consideration for a legal title pricepaid by the vehicle consumer.
 3. The computer-implemented system ofclaim 2 wherein the vehicle financing computer is further configured toreceive the vehicle information and the legal title information to atleast partially effectuate transfer of the legal title in the vehicle.4. The computer-implemented system of claim 2 wherein the legal titleprice is financed by the vehicle finance company.
 5. Thecomputer-implemented system of claim 1 wherein the future interest is areversionary interest or a remainder.
 6. The computer-implemented systemof claim 1 wherein the vehicle dealership provides the vehicle.
 7. Thecomputer-implemented system of claim 1 wherein the legal title isprovided for a legal title term.
 8. The computer-implemented system ofclaim 7 wherein the legal title term is equal to the vesting period. 9.The computer-implemented system of claim 8 wherein the legal title termand the vesting period is in the range of one year to six years.
 10. Thecomputer-implemented system of claim 1 wherein the future interest vestsupon expiration of the vesting period.